Orgrimmar, Dalaran, Thunder Bluff, etc...

FPS drops from 60 to under 10. It completely tanks.

I am running:
Windows 7
8GB RAM
ATI 5850
120GB SSD for WoW Folders
AMD Athlon 965 BE
1000w PSU

Settings are on absolute lowest when I enter cities, and they are still awfully laggy.

Could it be from my internet speed? (Normal ping is 450+)